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Working Tax Credit Compliance

24

Comments

  • Sixer wrote: »
    OP: the general philosphy for remunerative work is that all business-related activities are counted - but you have to have a business in the first place to start counting them. Does that make sense? So if you are hoping to sell a product or service, but don't have any clients, you're not yet in remunerative work and not yet self-employed. If what you do is more of a hobby (eg you sell a few pots of jam at the occasional WI bake sale) then you're not in remunerative work and you're not self-employed. You see?

    Well I am registered self employed, have a business bank account. I run two eBay accounts, one I get commission on everything I sell ( I run it for someone else), the other is 100% to me. I buy selected items to refurbish & resell. I also do other work, mainly diy type jobs for friends work in a part time capacity I guess. I charge minimum wage for this.

    I don't understand 'So if you are hoping to sell a product or service, but don't have any clients, you're not yet in remunerative work and not yet self-employed.'

    If I have products & they are for sale on eBay, where does that sit? Most everything I have on there sells. Surely any shop with stock on shelves selling stuff doesn't have clients until they sell something? I don't get that bit...

    For by buying & selling, finding the items takes hours & hours of trawling through ebay, Gumtree, PreLoved, Loot, Google etc. So is that not counted? If not I really don't see the point, I will give in right away, let them do their best to me & hope they feel glad & justified when I'm on JSA.
  • Sixer
    Sixer Posts: 1,087 Forumite
    BigAunty wrote: »
    yes, I know they are merciless as my partner and I (non-benefit claimants) had a review and had to get specialist tax consultants to help defend us. They were targetting us under the IR35 regulations and the tax consultants were able to demonstrate to the HMRC that they weren't even following their own regulations. So they couldn't do us for IR35 so they went through all our expenses and discounted the main travel ones which our (now ex) accountant had wrongly approved.

    IR35 is a TERRIBLE piece of regulation/legislation! Introduced for understandable reasons, but not fit for purpose.
  • Sixer
    Sixer Posts: 1,087 Forumite
    Well I am registered self employed, have a business bank account. I run two eBay accounts, one I get commission on everything I sell ( I run it for someone else), the other is 100% to me. I buy selected items to refurbish & resell. I also do other work, mainly diy type jobs for friends work in a part time capacity I guess. I charge minimum wage for this.

    I don't understand 'So if you are hoping to sell a product or service, but don't have any clients, you're not yet in remunerative work and not yet self-employed.'

    If I have products & they are for sale on eBay, where does that sit? Most everything I have on there sells. Surely any shop with stock on shelves selling stuff doesn't have clients until they sell something? I don't get that bit...

    For by buying & selling, finding the items takes hours & hours of trawling through ebay, Gumtree, PreLoved, Loot, Google etc. So is that not counted? If not I really don't see the point, I will give in right away, let them do their best to me & hope they feel glad & justified when I'm on JSA.

    I really don't understand your problem? You're making a self-assessment claim and you are being asked to prove that claim via records: business diary, invoices payable, invoices paid, receipts, etc. You obviously have access to full eBay records. You presumably issue at least a receipt for people you do odd jobs for? You can show your business bank account. These will bear out your self-assessment.

    So why are you so cross? Self-assessment is done on trust. Why is it so wrong for HMRC to check a proportion of them?
  • Go and pick your dummy up and toys and put them back in the pram for goodness sake, you sound like my spoilt 3 year old son!!!

    Who the hell do you think you are? What gives you the right to pass judgement on someone you know nothing about, and whose personal circumstances you know little of?

    People like you make me sick. I'd hate to think you were ever in a bad way and someone dished out advice like that. I would never do it nor condone it. I hope you feel proud of yourself and feel better for that.

    Speaks volumes for what kind of person you really are.

    I pity you.
  • Dognobs
    Dognobs Posts: 396 Forumite
    I sell stuff on ebay, SO HMRC Show me the money!!!
    EVERYTIME YOU THANK MY POSTS A PUPPY DIES!

    TAXPAYERS CAN'T AFFORD TO KEEP YOU ANYMORE GET A JOB!
  • BigAunty wrote: »

    I wonder how much explicit guidance was given to those setting up their businesses about this type of administration and how much it was expected that they interrogate the lengthy online manuals.

    Keeping records and allocating time, should all be part of their business plan. From reading the forums, it seems many SE people didn't have a business plan or seek free business advice from places like Business Link. Often councils arrange open days in their town halls (and fill the hall with relevant companies and government representatives) to help those who want to be SE or have a good invention.

    TBH, from reading these threads, it seems some used WTC as a way to avoid 'signing on', while others never sought any business/tax advice at all.

    To the OP, can you go back over your diary and use that to provide HMRC with some of the information they require?
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • Weary_soul
    Weary_soul Posts: 272 Forumite
    edited 20 January 2012 at 10:24AM
    Who the hell do you think you are? What gives you the right to pass judgement on someone you know nothing about, and whose personal circumstances you know little of?

    People like you make me sick. I'd hate to think you were ever in a bad way and someone dished out advice like that. I would never do it nor condone it. I hope you feel proud of yourself and feel better for that.

    Speaks volumes for what kind of person you really are.

    I pity you.


    Well said.

    Read this thread over on the CAB advisors forum and you'll see that there's a lot of people getting hauled over the coals for having a low wage, or claiming the disability element. Looks like the Inland Revenue are playing fast and loose with their own regulations..

    http://www.rightsnet.org.uk/forums/viewthread/1956/
  • Keeping records and allocating time, should all be part of their business plan. From reading the forums, it seems many SE people didn't have a business plan or seek free business advice from places like Business Link. Often councils arrange open days in their town halls (and fill the hall with relevant companies and government representatives) to help those who want to be SE or have a good invention.

    TBH, from reading these threads, it seems some used WTC as a way to avoid 'signing on', while others never sought any business/tax advice at all.

    To the OP, can you go back over your diary and use that to provide HMRC with some of the information they require?

    Yes I can go back & print out all the payments made & received etc. I do all my own accounts using software so I have records of every penny. My main question was that of my spending time looking for things to sell, and whether that is remunerative?
  • Sixer wrote: »
    Anyone can be subject to an HMRC inspection at any time as they also do random ones, and if you've ever worked anywhere that had one - tax, VAT, whatever - you'd realise what a hole you'd be in if your records were a mess. These people are merciless!

    Even if you have kept your records in good order, they can still challenge you. Both my sisters' had a business (one with a shop, the others with a garage and shop), both kept good records, but having a random HMRC inspection, is still scarey. In the latter business, my sister was issued with an extra tax bill and had to go to court to prove she was correct and HMRC were wrong. She won, but still had to pay her own legal bill as she was told that HMRC don't compensate for legal bills.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • Dognobs wrote: »
    I sell stuff on ebay, SO HMRC Show me the money!!!

    I take it you've never used eBay then. Never bought anything from there. Don't know anyone who has. Didn't realise it's now one of the highest ranking sites for retail sales. Pretty much has the monopoly.

    No - thought not.

    Well can I welcome you to 2012?
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